Hollywood Raises Fee To Offset Budget Woes

While several other cities in Broward County are seeking to enact an emergency-services fee to replace a lost county subsidy, Hollywood officials have something else in mind.

They're also using the fee to help balance the budget.

City commissioners on Wednesday passed a law that will assess taxpayers an annual fee of $59 to help pay not only for emergency medical services but also for fire protection.

Hollywood officials say the fee will generate about $5 million a year. It's needed to offset $1.8 million in revenue lost when Broward County decided to stop providing rebates to cities that operate their own fire-rescue services.

City Manager Sam Finz told the commissioners that, because a substantial portion of the city's budget goes to pay for fire and rescue services, it makes sense for the city to use a fee to help support the Fire Department - while at the same time providing property tax relief.

"We're trying to provide the best services possible, but that comes at a price," Finz said Most of the commissioners agreed, voting 4-1 to give initial approval to the fee; a final vote is set for July 17.

Commissioner Ken Gottlieb voted no, arguing that the fee would unfairly burden apartment owners, who would be unable to pass the cost on to renters for fear of losing them to other areas, such as Aventura.

The other commissioners, however, were swayed by Finz's argument that if the fee were not approved, property tax bills would have to be increased to make up the difference. But the commissioners promised to cut property taxes to give taxpayers some relief.

"What we're talking about here is a little more than a dollar a week to maintain what everybody says is the best service," Mayor Mara Giulianti said.

The new fee, coupled with a lower tax rate, means the owner of a $100,000 home would see an increase of about $5 in taxes and fees, Finz said. But the increase will be that small only if the city reduces its tax rate from $6.36 to $5.99 per $1,000 of asssessed valuation -a savings of about $28 for that same homeowner -and the county reduces taxes on the home by about $25.

Some residents, however, said the fee would be unfair because it would bring in far more than the $1.8 million the city is losing.

"It sounds like we're gouging the taxpayer," said Sal Oliveri, a former mayor. "We don't we just fill the gap right now?'' Pete Brewer, a frequent commission critic, said the city should charge less, maybe about $28 instead of $59 - about what Broward County charges now for emergency service.

"The fact of the matter is that we do not need to raise $5 million in order to replace a $1.8 million deficit," Brewer said. "If we don't need it, why do it?''